1 Nov 2010 17:15
OXUS GOLD PLC
AGF Phase 2 Project Development Fund
London: 1 November 2010 - As previously disclosed by Oxus Gold plc ("Oxus" or the "Company") in its interim results for the six months ended 30 June 2010 (announced on 20 September 2010), the Company had a liability at 30 June 2010 on the AGF Phase 2 Project Development Fund ("Fund") of US$9.87 million.
The Fund, payable to the Uzbekistan Government for access to mineral rights, was created in July 2004. The Company originally committed to transfer the monies to the Fund over the period to May 2008. Discussions are ongoing with the Uzbek Government with a view to determining new payment terms, including the terms of a contingent liability to penalty interest equivalent to 5% per annum from 1 November 2008 on overdue amounts in accordance with the original agreement signed between the Company and the Ministry of Finance of Uzbekistan in July 2004.
Oxus announces that the Economic Court of the City of Tashkent, Uzbekistan has made a ruling in favour of the Ministry of Finance of the Republic of Uzbekistan confirming that the liability due to the Fund is approximately US$10.84 million, including penalty interest due to date.
The Company confirms that discussions were held with senior representatives of the Ministry of Finance last week. The discussions were friendly and constructive and covered the liability to the Fund, which Oxus has committed to pay as soon as practicable, in addition to the further development of Amantaytau Goldfields and the potential for increased cooperation between the Company and the Uzbek Government.
The Company will make a further announcement regarding the above matter as and when there are any material developments to report.
For further information, please contact;
Oxus Gold plc
Richard Shead / Richard Wilkins Tel: +44 (0) 207 907 2000
Fairfax I.S. PLC
Nomad & Broker
Ewan Leggat / Laura Littley Tel: +44 (0) 207 598 5368
Conduit PR Ltd
Ed Portman / Leesa Peters Tel: +44 (0) 207 429 6607